Noirbank is currently under development but hurdles are everywhere. The first thing you have to answer is what kind of institution would you say you are establishing? If you include a currency such as USD you will have to register as a commercial bank, which means being connected to a national reserve and being subject to the banking laws of that nation.
I spent 4 hours on a conference call trying to explain what how and why crypto-currency is. Then they asked the obvious question, OVERSIGHT and TAXATION. Already if you look at the crypto world, those are alien words.
Yes I'm trying to stay away from fiat. This would be strictly cryptocurrency. If it takes off and develops a large deposit base then I would consider including fiat money exchange, but not fiat money deposits. It is good to see others are engaging existing financial institutions. It is getting the the concept of cryptocurrencies out into the public space. I'm doing this feasibility study for an undisclosed financial institution that is considering entering the cryptocurrency market but has no interest in implementing a solution that will not have a return. So a banking experiment in cryptocurrencies such as this, if successfully will entice them to invest. |
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It would be the same in the real world.
I know what you are leaning towards but , actually its not the same as in the "real" world because Financial institutions collateralize Debt through a fractional reserve system - this is actually how Banks make so much wealth , of course you understand they create "new" money when they create "new" Debt . this is how they reap interest on the same entity many times, without that feature (impossible for Cryptocurrency, its essentially a permanent 51% attack with double spends) the "Bank" will take on a lot more risk to conduct financial transactions. I'm not saying its impossible , and to tell you the truth it will exist in the future , but I'm just explaining the differences. Modern real world "Banking" really is a scam, but its not really the Banks fault its just the system they exist in, only a tiny % know how it even works. but its that "Scam" that lets them take a lot more risk, add then , the fact that they have a lot of political control , and we end up where we are. I'm just pointing out that the Risk is skewed the other way with Cryptocurrency. I agree that the fractional reserve system allows banks to reduce their risk tremendously and yes a cryptobank would take on risk for the benefit of depositors. Some loads would default but some would produce. Its the aggregate that I'm looking to that would net a return for depositors. Whether it is to fund the expansion of a mining operation, the creation of a new faucet site for a crypto the bank would help fund the project through deposits in return for a return on the loan. It's a means of reducing risk in crypto currency investment. Currently the only thing you can do is buy and hold and hope that developers will appear to help improve the utility of a cryptocurrency. But what if you could buy and hold them in a deposit account and those funds would be loaned to help promote utility. What I'm trying to get at is to create a banking institution that is for the better of the cryptocurrency community. Not a storage for coins, not strictly an investment vehicle and definitely not to scam. Would establishing a board of directors that included 1 developer from each of the serviced cryptocoins help establish trust? |
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Thanks for all your constructive criticism.
The bank would completely transparent. Adhoc reporting would be available that would address where each cryptocoin would be located. The banks corporate information would be published along with the contact information for each of the board of directors. There would be no reason to hide under the guise of a forum account as this would be a publicly open institution.
Accounts would be interest bearing with a rate equivalent to the investment that the bank is making with the deposits. You would control which investments the coins were directed towards. Depending on the type of investments they would have a lock in period similar to a CD.
The primary vehicle for generating interest on deposits would be through lending operations. Customers of the bank would be required to establish trustworthiness in order to obtain a loan. It would be the same in the real world. Providing collateral would reduce the lending rate, allow for larger loans. Providing contact information, email, address, phone, bank account numbers would further improve lending rates.
The lending products are there to help improve the coin community. A way to help invest in the development of coin features by improving coins increasing their value while providing the depositors a return for their investment. It would also allow for small investors who do not have the capital but have a very well established trust with the bank to maximize their gains through leverage thus improving the profits for depositors.
This bank wouldn't be a store of wealth but an investment vehicle.
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I will use the Free Bank of Digitalcoin.
Not what I'm asking. I'm looking for the feasibility of and multicurrency (BTC, LTC, FTC, DGC, etc) bank that provides services such as savings, deposit, lending, investment, merchant, etc |
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If there was an entity that acted like a multicurrency financial institution what products and services would you utilize.
Multiple cryptocurrencies.
Daily exchange rates between currencies.
Deposit accounts with interest rates
Lending services, collateral backed and otherwise.
Investment accounts.
Customer credit worthiness.
Escrow.
Would you use it? Why? Why not? What other services would you like to see?
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Interested. I've subscribed
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It's a B, not a 3. Stop guessing names with 3's already.
Hell, stop guessing names at all, I already posted what it is.
I can confirm the name has not yet been "guessed". My Canadian friend will get a reward for being the closest, but one is still available for someone who gets it correct, eh  bits, bars, bullions, balls, bags, balloons, baskets, am i getting close? It was bonds until you changed it. Cryptogenic Bullion is correct. Kind of an anticlimactic finish to the contest, lol, but well done sir. I ask that you download the wallet after launch and send me your address to claim your reward. Everyone else, thank you for your contributions to this thread. Look for the official launch soon with a full explanation of what this innovative currency concept is as well as additional giveaways  Cryogenic Bullion would be much cooler IMO. https://en.wikipedia.org/wiki/Cryogenics Especially if the logo contains ice! Cryptogenic comes from the meshing together of cryogenic and crypto :-) Man and I thought it was going to be something interesting, just another crap coin. |
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Such market manipulations are 'illegal' because 'normal' people can make a lot of money with em. Laws are made by the powers that be to make sure they don't loose their position. Ask yourself why only the elite can make big money on wall street with similar actions and don't get jailed. As long as this is the case I have to say: Fuck the elite and fuck the law. The plan has changed. We will all join fontas' pump: https://forum.litecoin.net/index.php/topic,4698.0.htmlthere is a difference between "rule of law" and the veil of "rule of law". If you can't see the difference then you are clueless. you're still young and naive, you'll learn in time. |
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Are you going to develop this, or is it more an academic idea that you have put out into the wild? I'm looking for a coding expert who can generate a proof-of-concept client. It shouldn't be too hard to create the network. I mean all that you are really doing is defining who you can connect to in a table. Just create a look up table to the ip address of related nodes on the network. The problem is always NAT translation. |
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hmm, interesting. Sounds like a PoS system with a fancy new blockchain?
I just woke up so the wall of text is a bit much to decipher atm, but i think that was basically the gist of it, yeah?
correct me if I"m wrong OP, its a small block chain chain that only keeps track of the most recent transactions. historical chain resides locally on each node in the network and can be reconstructed on the fly. This makes the blockchain lightweight and fast. It's the network that is really the most interesting part. It is placing the peer to peer UDP style fire and forget system to one where each node or more reliably interconnected with others. |
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I'm thinking something like this probably isn't very healthy for LTC :-/
Thoughts?
It is not. Publicly addressing this kind of intention makes me think about what the hidden intentions are. Not just of the OP but others reading this who would consider selling into the pump to offload a lot of LTC that they think they can get back at a lower price after the pump is over. I could see the OP buying in ahead of the pump in order to sell into the pump. The result... many people that are holding LTC for a loss. Either they will be sellers immediately and take the loss or sellers when the price breaks even on them. Either way it creates a negatively in the tradeable asset. I've spend over a decade trading forex and I started in penny stocks in the late 90s. I know the anatomy of a pump and dump I know that the public posting are not what is really happening behind the scenes. I recommend everyone be very careful with this. |
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Nitrous Oxide cooling for GPUs.
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I have to digest your paper tonight. So far your design for the network topology is interesting. Your requirement for "minimum balance" sounds somewhat like "proof of stake".
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cryogenic coin...
-tb-
Nice guess, that would be CRC. The initials are CGB I will give a reward if someone guesses correctly though... Is it conners group creating a new trading platform for crytpos? http://www.cg3.com/ |
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what happened to CG1 and CG2?
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Really? 50 litecoins every 2.5 minutes is 12000 coins in 10 hours. Not all of them are going to be sold, so even if half of those are dumped immediately as BTC-e goes online, it won't make a huge difference in the price.
But they put current buyers at a loss, so they might panic sell. Also It might trigger bots to action. I'm just speculating. Oh and I guess BTc-e is back online. lol |
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There have been a lot of exchanges that so happen to have maintenance scheduled all that the same time. Now BTC-e is down for a prolonged period of time. If I were running an exchange I would want high availability and keep at least 2 servers up and running one to take down to to maintenance while the other one hosts the site in production. But that is besides the point.
Btc-e is the biggest LTC trading exchange. With it being down for a period of time I expect that miners who need to sell LTC to pay expenses will build up a lot of LTC that will be dumped on to the market at the same time. That drops LTCs price.
Now what stops someone from coordinating multiple DDOSs of all the LTC exchanges to build up and supply of LTC in miner hands. When you feel that enough people have LTC they want to sell you stop the DDOS and now you get the price action you intended. A drop in LTC price. Why would you want to crash the price of LTC? Because you missed the boat and you want to pick up the shares that the miners will be dumping.
Thoughts?
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